Embrace succession management to ride out downturn: HR experts
Employers that stop investing in succession planning and management risk losing the benefit of their efforts over the next five - critical - years, according to a white paper by PageUp People.
Longer-term view neededUp to now, the paper says, organisations have focused too much on succession 'events' (replacing key individuals) instead of considering the process by which employees are developed during their careers in preparation for their next challenge.
As the current economic uncertainty makes it harder to sustain all employees in their current positions, succession planning should be used to identify possible lateral movements as well (to different functions, project teams or geographic locations), it says.
"Businesses are operating in a different financial landscape than they were 12 months ago. Surviving and prospering in the current economic environment requires leaders to review their talent management approach carefully before reactively shedding staff.
"Those that already have a SPM program in place should focus on overcoming their unique obstacles to a best practice system; those who do not currently invest in SPM should perhaps consider the value it could add over the medium to long term."
Measure SPM successThe paper suggests a number of metrics that HR professionals can utilise to validate their SPM programs and justify the costs involved to senior management.
Areas HR can measure include the:
Planning must include developmentThere is still substantial debate around whether replacements should come from inside or outside an organisation, the paper notes, but research suggests that insiders tend to deliver better results.
"This is only the case however if insiders have been groomed for the role. The negative impact on the organisation of a poor hire (or an unprepared internal successor) increases with the seniority of the role being filled.
If you have some HR news to share or would like to suggest a topic for an article, click here to email the editor.